A bill has been filed at the House of Representatives mandating the government to institutionalize its financial literacy programs for workers.
House Bill 9888, filed by Rep. Brian Raymund Yamsuan of Bicol Saro party-list group will enable workers to invest their hard-earned money wisely and protect them from scams that have proliferated in the country’s fast-growing digital economy.
With over P155 million reported to have been lost to various types of scams in the first eight months of 2023 alone, Yamsuan said the best way to shield Filipinos from fraudulent activities is to educate them on how to manage their finances and detect bogus financial schemes.
To achieve this goal, Yamsuan’s HB 9888 provides that the Department of Labor and Employment (DOLE), Department of Trade and Industry (DTI), and Bangko Sentral ng Pilipinas spearhead a campaign that would make financial literacy materials readily accessible to the public through various communication platforms.
They should also work together with other government agencies and state-owned and controlled corporations to expand the reach of their financial literacy programs, Yamsuan said.
“While the digital economy has provided us many benefits, it has also spawned all types of scams that have robbed many of our kababayans of their hard-earned money, The government, through the DOLE, should take the lead in bridging the financial literacy gap among Filipinos,” Yamsuan said.
According to the Philippine National Police-Anti-Cybercrime Group (PNP – ACG) it has received over 8,000 complaints of various online scams from victims who lost more than P155 million from January to August last year. These scams involve bogus investments, jobs, and loan offers, among others.
Yamsuan said these numbers could even be higher because many victims choose not to report or file complaints against fraudsters.
“Combatting digital fraud cannot be done through law enforcement alone because these types of crimes always evolve into even more sophisticated means of deceiving the public. Prevention is an equally important measure to protect the public from scams, which the government can do by strengthening its financial literacy programs,” he added.
Under HB 9888 or the proposed Financial Literacy and Fraud Prevention for Workers Act, the financial literacy materials to be made available to the public “should be presented in an easily comprehensible format, and translated in Filipino and Bicolano, and other relevant regional languages and dialects, to ensure a wider reach of the materials to the intended audience.”
The DOLE is also authorized to award grants to eligible employers and working entrepreneurs for them to be able to conduct financial literacy programs and fraud detection and prevention seminars for their workforce.
Under the bill, the DOLE shall establish and follow a transparent and competitive selection process for entities applying for the grants. It should also conduct regular reviews to evaluate the effectiveness of the implementation of the financial literacy and fraud prevention programs.
Other government agencies, government-owned and controlled corporations (GOCCs) and banking and credit facilities are likewise mandated under the bill “to integrate financial literacy initiatives into their operations and services” which include “organizing regular seminars for employees, and conducting preparatory sessions or lectures for loan applicants, among others.”
With a significant percentage of Filipinos lacking proper financial education, the Philippines has witnessed a rise in financial scams and fraudulent activities targeting unsuspecting individuals. In 2021, 11 percent of Filipino adults lost money due to lottery or prize scams, investment scams, and phishing tactics, according to a BSP survey.
The same BSP survey showed that only 2 percent of the polled Filipino adults correctly answered all questions on basic financial literacy.
“Thus, enhancing financial literacy is necessary in empowering workers, not only by educating them to recognize and safeguard themselves from fraudulent schemes, but also to ensure that they have a good understanding of the fundamental concepts of finances. Ultimately, this would allow them to make informed and sound financial decisions which can contribute to a more stable financial environment,” Yamsuan said.
